Bixby Capital Refinances Six-Property Portfolio for $110M

Bixby Capital Management has refinanced a fully leased six-property industrial and office portfolio in Southern California and Texas with a $110 million permanent loan arranged by Gantry.

The portfolio includes five single-tenant industrial assets in Southern California and Texas submarkets and Bixby’s office headquarters building in Newport Beach, Calif.

The 12-year, fixed-rate, non-recourse loan was secured from one of Gantry’s longtime correspondent insurance company lenders and features full-term interest-only. Gantry will service the loan on behalf of the lender, which was identified by Yardi Matrix as State Farm.

Gantry Senior Director Stephan Coste, Principal Andy Bratt and Associate Nick Severson of the firm’s Irvine, Calif., production office, represented the borrower.

The tailored collateral flexibility supports Bixby’s long-term portfolio strategy, according to Gantry.

Coste said in prepared remarks that the team evaluated more than 40 options for Bixby before closing the deal. He said they wanted to find the right partner and structure to maximize proceeds for the high-quality, fully leased portfolio.

Bixby HQ highlights

Bixby’s headquarters is the only office asset in the portfolio to be refinanced. Known as the Avalon, the two-story, 46,052-square-foot property is located at 1501 Quail St., in Newport Beach. Located on 2.05 acres, the asset was built in 1973. Bixby acquired the multi-tenant building in January 2014 from TA Realty for $9.2 million, according to Yardi Matrix data.

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Other tenants include Bridge Logistics Properties, Balfour Beatty and Brandtailers. The property has 138 parking spaces and an electric vehicle charging station.

Closer look at industrial assets

The five industrial properties are located at:

• 1201 Bell Ave., Tustin, Calif., is a 122,807-square-foot warehouse located on 5.3 acres in the Irvine Business Complex in Orange County. Bixby acquired the property in November 2004 from TA Realty for an estimated $14.3 million, according to Yardi Matrix data. The building is currently leased to Logomark. The front-load warehouse has seven dock-high doors and one grade-level door. It is situated near I-405, I-5 and Route 55
• 5665 Corporate Ave., Cypress, Calif., is a 160,000-square-foot manufacturing and office property leased by Tandem Foods. Bixby acquired the asset in February 2015 for $22 million from LBA Realty, Yardi Matrix shows. Located in the West Orange County submarket, the 24-foot clear-height building is located on nearly 6 acres and has roughly 30,000 square feet of office space, a secured truck yard, 15 dock-high doors and two-grade level doors. It is located within a 10-mile radius of the Ports of Los Angeles and Long Beach and within a 30-mile radius of five major airports
• 1601 Fairway Drive, Colton, Calif., is a 179,355-square-foot, Class A distribution building located on 8.3 acres in the Inland Empire East submarket. Bixby acquired it in April 2018 for $21.3 million from Crow Holdings, according to Yardi Matrix data. The side-load building is leased by DHL. It has a 32-foot clear height, secure truck court, ample trailer parking and multiple access points. It is located near the intersection of the I-25 and I-10 freeways, providing access to Southern California markets and the Ports of Los Angeles and Long Beach
• 951 E. Pleasant Run, Lancaster, Texas, is a 268,989-square-foot Class A warehouse located in the South Dallas submarket. The rear-load building delivered in June 2023 and includes 36-foot clear height, ample trailer parking and proximity to major interstates. Bixby acquired the property in June 2023
•  6807 Elroy Road, Del Valle, Texas, also known as ATX 130 Building 3, is a 207,180-square-foot Class A facility acquired by Bixby this month. It is the company’s first purchase in the Austin market. The cross-dock building has 36-foot clear height, 60 dock-high doors, three grade-level doors, a 130-foot truck court and a 2-acre secured outdoor storage yard. The property is fully leased to Ferguson, a wholesale distributor of plumbing, HVAC and industrial/mechanical supplies